Views Sought On Plans To Scrap Council Tax For Least Wealthy In Lewes

Lewes District Council is seeking views on its plans to ensure the least well off no longer have to pay council tax.

On Thursday (June 10) cabinet councillors agreed to move ahead to consultation on its plans to introduce a 100 per cent council tax reduction for those most in need of support. 

The change would increase the current maximum discount from 80 per cent. 

In a statement released after the meeting, cabinet member for finance Zoe Nicholson said: “Consulting on this scheme is an important step towards our goal of giving people who are struggling the support they need, as Covid continues to impact more heavily on those on low wages and in insecure work.  

“For the first time in years, our scheme will mean that hardworking families in the toughest financial situations will not have to pay any council tax.” 

While agreed by cabinet members, the meeting also saw Conservative group leader Isabelle Linington reiterate her party’s objections to the  proposals put forward by the council’s cross-party coalition.

She said: “I am not denying people need help, that is not what I am saying at all. I am just saying, should we have a scheme that gives 100 per cent relief? 

“It is going to cost the district council money at a time when we are still trying to look at savings  and it is also going to affect all the other preceptors more than it will affect our council. It will be interesting, when you do the consultation, to see what all the other preceptors say.  

“There is another aspect as well, which you may not agree with. I think everyone should pay something towards the services they receive, even if it is only a very small amount. It then gives them a greater stake in their council and their community if they just a little bit towards the services they receive. 

“If you give them 100 per cent relief, they don’t have any say in it all I think.” 

As a legal requirement for any changes to the scheme, a consultation on the proposal will now take place with the major preceptors of council tax in Lewes district – East Sussex County Council, Sussex Police and East Sussex Fire and Rescue.

While the current scheme offers a maximum (and means tested) discount of 80 per cent, the scheme means around £7.4m of council tax is not collected from those who can least afford it in Lewes.  The cost of this is spread across all preceptors.

Moving to a 100 per cent discount would be expected to cost somewhere in the region of an additional £1.4m, officers say.  It would cost Lewes District Council around £160,000 of lost income and East Sussex County Council around £989,000.

The changes proposed would also remove the minimum income floor for the self-employed residents and there would be no minimum award value. 

Chris Collier, cabinet member for performance and people, said: “We believe this could be a lifeline for people experiencing hardship as they strive to make ends meet through this pandemic and into the future.” 

The consultation with major preceptors will run until July 10. A more detailed draft scheme will go through a further round of consultation before a final decision is made.

If approved, the scheme would be expected to come into force in the 2022/23 financial year.